Former presidential candidate and Republican congressman Ron Paul has some troubling predictions for what’s down the road for stocks. According to Paul, the economy is not as strong as Wall Street or President Trump believes, and therefore a major correction could happen as soon as October this year.
Paul told CNBC, “If our markets are down 25 percent and gold is up 50 percent it wouldn’t be a total shock to me,” said Paul.
Paul, is a rockstar with Libertarians, and he is never shy with his bearish outlooks and attacks on the Federal Reserve. He is also very outspoken with his displeasure with the Trump administration.
“I think it’s a very precarious market, and the Fed better be very careful. Since they are incapable of knowing what to do, I don’t expect much good to come out of anything they do,” said Paul. “There are so many mistakes made out there that the correction is almost unlimited.”
The stock market rally is one of the “accomplishments” President Trump takes credit for since entering the White House. Paul claims the stock frenzy is on borrowed time. “People have been convinced that everything is wonderful right now and that stocks are going to go up forever,” Paul said. “I don’t happen to buy this. The old rules always exist, and there’s too much debt and too much mal-investment. The adjustment will have to come,” he added.
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